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Japfa raises S$92.6m from oversubscribed rights issue

MAINBOARD-LISTED agri-food firm Japfa on Tuesday said it has raised net proceeds of S$92.6 million from its recently-concluded rights issue. 

The proceeds will go towards paring its debt - about S$16.9 million will be used to repay a revolving facility; another S$13 million will be used to repay a term facility. The largest sum, about S$62.7 million, will be used to partially repay a revolving facility under a syndicated facilities agreement. 

Japfa had, last December, proposed to undertake a renounceable non-underwritten rights issue on the basis of one rights share for every 10 existing ordinary shares, at an issue price of S$0.50 for each rights share.

About 186.3 million rights shares were available for subscription but it was oversubscribed by 36.4 per cent by the time the issue closed on Jan 31. 

Rangi Management, which controls 50.9 per cent of Japfa, had earlier pledged to subscribe for an aggregate of 136 million rights shares. Following the rights issue, the shareholder will hold roughly 51.8 per cent of the enlarged share capital. 

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The rights shares will be allotted and issued on or about Feb 7. 

Japfa shares closed up 1.87 per cent to S$0.545 on Tuesday before the announcement.

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